2016 INSURANCE INDUSTRY TALENT TRENDS - GUIDE What trends will have an impact on the industry? - The Jacobson Group
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GUIDE 2016 INSURANCE INDUSTRY TALENT TRENDS What trends will have an impact on the industry?
INSURANCE INDUSTRY TALENT
SHORTAGE COMES TO A HEAD
“For years, the insurance industry has failed to engage
enough professionals to help bridge the growing skills gap
resulting from impending retirements. Now the mass talent
shortage is here and insurers must take action.”
- G regory P. J acobson , chief executive officer
#1 Insurance Industry Talent Shortage
Comes to a Head
The insurance industry labor market is heating up. Low unemployment, increased demand and an aging workforce
have created a talent war within the industry. With 25 percent of the current workforce expected to retire by 2018,
the industry faces a potential deficit of 400,000 positions. Unfortunately, the current pool of insurance industry
talent is unable to keep up with these anticipated demands.
Faced with a mass talent shortage, organizations are being impacted by lengthening hiring cycles and backlogged
projects resulting from being short staffed. In order to combat this, organizations need to revamp their current
staffing strategies—including looking at alternative staffing solutions such as contract and interim talent.
Key Takeaway: Organizations must shift their • The number of insurance workers over age 55 is expected
focus to addressing the growing need for to grow by 25 percent from 2008 to 2016, while the
number of workers between ages 35 and 44 will decline by
industry talent and rethink their current staffing three percent.
strategies and practices in order to ensure their
• An estimated 60 percent of all new jobs in the 21st century
future success.
will require skills and experience held by only 20 percent
of the current workforce.
Source: McKinsey & Company
EMERGING TALENT IS THE KEY TO
THE INDUSTRY’S FUTURE
“Faced with an aging workforce, impending retirements and an
increasingly shallow talent pool, young professionals and recent
graduates are the key to combating the industry’s growing skills gap.”
- D avid E. C oons , senior vice president
#2 Emerging Talent is
the Key to the Insurance
Industry’s Future
Millennials are currently the largest generation in
the workforce. These young professionals make
up more than a quarter of the U.S. workforce.
Unfortunately, the insurance industry is falling
behind in its efforts to attract this generation of
talent. Despite placement rates close to 100
percent, the annual yield of graduates from
the nation’s risk management and insurance
(RMI) programs meets only 10 to 15 percent of
industry needs.
• Annually, one million Millennials are entering the
Organizations must ramp up their engagement and
U.S. workforce.
recruitment efforts in order to bring more Millennial
• By 2020, 40 percent of the workforce will be
professionals into the industry. Insurers must focus
comprised of Millennials.
on appealing to the next generation by promoting
the perks and benefits they desire—including flexible
Key Takeaway: Update engagement and retention
work, mentoring opportunities and corporate
strategies to bridge the talent gap and become more
citizenship. Only then can they successfully combat
attractive to the next generation of professionals.
the growing skills gap within the industry.
Source: U.S. Bureau of Labor Statistics, PwCTIME TO LOOK BEYOND THE INDUSTRY
“Finding exceptional talent is becoming more and more difficult.
Organizations must rethink their hiring strategies and look beyond the
resume in order to expand their potential pools of talent.”
- A bbe S odikoff , senior vice president and health manager#3 Time to Look Beyond the Industry
Finding qualified, experienced talent within insurance is becoming more and more of a challenge. As the competition
heats up, insurers are presented with a unique opportunity to expand their talent reach and look at professionals outside
of the industry. In order to succeed, organizations must begin to look at individuals with key transferable skills.
By shifting the focus towards qualifications and looking beyond a resume with limited insurance background and
experience, companies can bring in excellent candidates with unique abilities who can make an impact on the industry.
It also presents the opportunity to bring in fresh talent and perspectives that may be key to revitalizing the insurance
industry. Professionals with backgrounds in STEM—science, technology, engineering and math—or individuals who have
worked as CPAs, financial officers and customer service professionals have been shown to excel in insurance. Now is the
perfect time to cast a wider net and begin recruiting out-of-industry talent into the insurance ranks.
2015 saw an average of
Key Takeaway: Finding talent in today’s challenging labor market 243,000 job openings
may take some innovative thinking. Looking beyond the resume, within the industry.
finding professionals with the base skills and growing them into
valuable employees is key.
65 percent of insurance organizations are planning
to increase their staff in the coming year.
Source: 2015 Q3 Insurance Labor Outlook StudyINTERIM TALENT IS CLOSING THE GAP
“A drastic increase in regulations, new policy demands and a
growing demand for talent is creating a shortage of professionals.
Organizations are turning to interim talent solutions to fill the gaps.”
- B rad W hatley , senior vice president#4 Interim Talent is Closing the Gap
The insurance industry is feeling the talent crunch. Organizations are facing a number of industry-wide changes, including
new mandates and regulations that must be addressed. As the focus shifts to staying ahead of the growing number of
new requirements and processes, insurers are in need of qualified talent.
As a result, more and more insurers are turning to interim staff to help get the job done. These highly-qualified
interim industry professionals offer a cost-effective, time-sensitive solution to growing organizational staffing
needs. With talent providers now staffing a broad landscape of contract professionals—from entry level all the
way up to subject matter experts and executives—insurers are realizing that interim professionals offer a unique
opportunity to find expertise on a temporary, contract basis.
Key Takeaway: Low industry unemployment, impending • By 2020, more than 40 percent of employees in
retirements, growth in talent demands and new regulatory the U.S. will be temporary, contingent workers.
requirements are driving a talent shortage. Interim talent • The temporary penetration rate has reached 2.05
is quickly becoming the solution. percent, with the addition of 72,200 temporary
employees in 2015.
Source: Intuit, Bureau of Labor StatisticsFLEXIBLE WORK OPTIONS BECOMING THE
BUSINESS STRATEGY OF THE FUTURE
“Work-at-home and flexible work options are becoming increasingly popular
retention tools. As the labor market tightens and recruitment becomes more
challenging, flexible work is a great opportunity to expand the talent pool.”
- C atherine P rete , senior vice president of operations#5 Flexible Work Options are Becoming the Business
Strategy of the Future
Flexible work options are making waves within the business world. Facing an unhappy and disengaged workforce,
organizations are turning to telecommuting as a viable employee engagement strategy. Not only does flexible work top
the list of requirements for many job seekers, employees who are given the option to work-from-home are 73 percent
happier in their jobs.
Having a work-at-home program allows organizations to better position themselves among today’s job candidates,
providing a competitive advantage that may be key in the growing war for talent. In addition, telecommuting allows
organizations to choose from a much larger talent pool, as they are able to recruit talent regardless of physical location.
An estimated 30 million By 2020, it is estimated that the Organizations save nearly $11,000
professionals in the U.S. work from number of telecommuting workers a year for each employee who works
home at least once a week. will increase by 63 percent. from home.
Key Takeaway: There are a number of strategic benefits that result from flexible work programs. As a result,
telecommuting is quickly becoming a key engagement and retention tactic.
Source: Telework Research Network, Work FlexibilityHIRING AND STAFFING GOES MOBILE
“As we move further into the digital age, more and more organizations
are starting to look at how they can take their hiring and staffing
strategies mobile. Smart phone compatible applications and
onboarding processes are the first steps in this digital revolution.”
- J o J o H arris , senior vice president of human resources#6 Hiring and Staffing Goes Mobile
Today’s professionals are the most connected generation in history. A recent survey revealed that 50 percent
of individuals check their phones 25 times per day, while 10 percent check more than 100 times per day. In
order to reach and engage potential candidates in today’s labor market, creating a mobile experience is key.
From optimized career sites to training apps, organizations must embrace digital advances lest they lose talent to
organizations that are more tech-savvy. Mobile is no longer the future. It is the present and businesses must catch up.
Key Takeaway: Organizations that fall behind in today’s rapidly evolving digital environment are going to miss
highly-qualified, skilled applicants. Having a recruitment strategy focused on getting your organization seen on
the small screens of smart phones and tablets is vital in today’s increasingly competitive labor market.
Source: Kelton research, MonsterGAMIFICATION IS TAKING TRAINING TO
THE NEXT LEVEL
“The insurance industry is facing an impending training revolution.
Gamification is the future of successful business training.”
- R ichard L. J acobson , C hief E xecutive O fficer#7 Gamification is Taking
Training to the Next Level
Facing a lack of interest in training and a growth in training expenses,
organizations are looking for alternatives to the traditional format.
The focus is shifting toward more accessible and engaging corporate
training options.
Fortunately, the fast-growing world of digital
gaming is poised to impact the world of
business—and corporate training is the next
gamification frontier. Gamified training adds fun
and excitement to what is often seen as a tedious Gamification incr
eases awareness
and boring process. Contrary to traditional among new hires
by as much
as 75 percent.
training programs that can often discourage new
More than 5
employees, gamification increases engagement 0 percent of
companies are ga
and morale. mifying aspects o
their organizatio f
n, including thei
Key Takeaway: Gamified training training programs. r
programs are taking the business
So urce : SA P, eL
world by storm, introducing a ea rn in g
revolutionized process that engages
and encourages new hires.THE ANALYTICS REVOLUTION
IS HERE TO STAY
“Analytics and technology are industry game-changers that are having a clear
impact on the way insurers do business. Only those organizations that embrace
the potential offered by these trends will find success in the new age of analytics.”
- M argaret R esce M ilkint , managing partner#8 The Analytics Revolution is Here to Stay
Analytics is revolutionizing the business world. It is changing the way we play sports, track information and even
shop for goods. It is driving the technology transformation within the insurance industry, permeating across all areas
including sales, marketing and customer service. Within insurance, analytics has transformed business practices
and even introduced new job functions.
As with all technology, change is happening at a breakneck pace. Today, 82 percent of insurance professionals
believe that organizations that do not take advantage of the growing technology and analytics trends will become
uncompetitive. It is clear that analytics is the wave of the future and the industry must get on board in order to find
future success.
Key Takeaway: Analytics is impacting all areas and functions within the insurance industry. Insurers must embrace
the newest advances in order to harness its potential.
• Companies in all industries are adding analytics positions
at a rate more than five times faster than the overall
national employment growth rate.
• The number of big data and analytics jobs are forecast to
increase by 92 percent by 2017.
• 25 percent of insurers are now investing in big data
and analytics.
Source: Strategy Meets Action, Gartner, Accenture, Computer WeeklyFor more than 45 years, The Jacobson Group has been connecting organizations with insurance professionals from the board room to the back room on a permanent and temporary basis. Regardless of the need or situation, Jacobson is the insurance talent solution. Want to learn more? Contact us at info@jacobsononline.com for more information or call us today at +1 (800) 466-1578. Stay updated. Global Headquarters | 30 West Monroe Street, Floor 15 | Chicago, Illinois 60603 | +1 (800) 466-1578 | jacobsononline.com
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